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Card Compromise at Several Retail Outlets

Card Compromise at several retail outlets

Press Release Issued August 2008 for and on behalf of IPSO Ltd.

In response to recent criminal activity involving the compromise of payment card terminals in retail outlets, IPSO warns retailers to be alert and assures cardholders that any fraud losses due to the crime in question will be reimbursed.

Criminals purporting to be Point of Sale terminal engineers tricked a small number of retailers into allowing them access to the terminals and PIN pads in their stores. While in the store, the criminals replaced the existing terminal with one they compromised earlier. Data then captured from genuine payment card transactions is transmitted to the criminals who use it to create fake magnetic stripe cards for potential use in countries which have not migrated to Chip & PIN technology. The compromise involves a small number of retailers and the banking industry is in discussion with all of those affected.

Commenting today, Úna Dillon, Head of IPSO Card Services stated that "we have been made aware that a small number of retail outlets have had their payment card readers tampered with by criminals in the past week. The criminals use the details obtained to create cloned cards however the fraud only enables the criminals to create old-style magnetic stripe cards. With Chip & PIN now fully implemented in Ireland and many countries across Europe, there are fewer places where the fraudsters can use the fake cards. Cardholders should not be concerned as anyone who may suffer a loss due to the fraud will be reimbursed by their bank or card issuer"

IPSO has been working together with the Gardaí, banks, card issuers, terminal manufacturers and other relevant bodies in the banking industry to examine the details of this fraud so that necessary action can be taken to minimise its impact and to prevent it in the future. The payments industry body is extremely concerned about these fraud attacks and ensures that all appropriate action is being taken. In the meantime, banking industry fraud monitoring systems continue to detect where fraud is taking place, thus keeping losses and disruption to a minimum.

If customers feel concerned that their card has been compromised in any situation, they should report this to their bank or card issuer. As a matter of course, cardholders should check their bank and card statements regularly and report any unfamiliar transactions immediately.

For further information see safecard.ie